Bassett Furniture Industries (NASDAQ: BSET) and Sleep Number (NASDAQ:SNBR) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and target prices for Bassett Furniture Industries and Sleep Number, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bassett Furniture Industries 0 1 0 0 2.00
Sleep Number 1 3 3 0 2.29

Bassett Furniture Industries presently has a consensus price target of $39.00, suggesting a potential upside of 1.30%. Sleep Number has a consensus price target of $33.40, suggesting a potential downside of 11.19%. Given Bassett Furniture Industries’ higher possible upside, equities analysts plainly believe Bassett Furniture Industries is more favorable than Sleep Number.

Dividends

Bassett Furniture Industries pays an annual dividend of $0.44 per share and has a dividend yield of 1.1%. Sleep Number does not pay a dividend. Bassett Furniture Industries pays out 25.7% of its earnings in the form of a dividend.

Volatility & Risk

Bassett Furniture Industries has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Sleep Number has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Institutional and Insider Ownership

71.8% of Bassett Furniture Industries shares are owned by institutional investors. 6.4% of Bassett Furniture Industries shares are owned by insiders. Comparatively, 4.0% of Sleep Number shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Bassett Furniture Industries and Sleep Number’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bassett Furniture Industries 4.09% 9.17% 6.15%
Sleep Number 4.34% 51.12% 14.26%

Earnings & Valuation

This table compares Bassett Furniture Industries and Sleep Number’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bassett Furniture Industries $432.04 million 0.96 $15.82 million $1.71 22.51
Sleep Number $1.31 billion 1.14 $51.41 million $1.41 26.67

Sleep Number has higher revenue and earnings than Bassett Furniture Industries. Bassett Furniture Industries is trading at a lower price-to-earnings ratio than Sleep Number, indicating that it is currently the more affordable of the two stocks.

Summary

Sleep Number beats Bassett Furniture Industries on 10 of the 16 factors compared between the two stocks.

About Bassett Furniture Industries

Bassett Furniture Industries, Incorporated is a manufacturer, importer and retailer of home furnishings. The Company’s segments include Wholesale, Retail – Company-owned stores and Logistical services. Its wholesale home furnishings segment is involved in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (licensee-owned stores and Company-owned stores) and independent furniture retailers. Its retail segment consists of Company-owned stores. It operates its logistical services segment through its subsidiary, Zenith Freight Lines, LLC, which provides shipping, delivery and warehousing services. Its portfolio of products includes Canopy Bed, Nightstands, Baby Bedding, Bedside Tables, Chaise Lounge, Writing Desks, Kitchen Furniture, Computer Hutch, Game Tables and Fabric Ottomans. Its range of furniture products and accessories are sold through a nation-wide network of over 90 retail stores known as Bassett Home Furnishings.

About Sleep Number

Sleep Number Corporation, formerly Select Comfort Corporation, is a designer, manufacturer, marketer, retailer and servicer of a line of Sleep Number beds. The Company offers consumers individualized sleep solutions and services, which include a complete line of Sleep Number beds, bases and bedding accessories. Its Sleep Number bed offers SleepIQ technology sensors that work directly with the bed’s DualAir technology to track each individual’s sleep. The Sleep Number bedding collection comprises a line of sleep products that are designed to solve sleep issues. It offers FlextFit adjustable bases, and Sleep Number pillows, sheets and other bedding products. It offers Sleep Number beds in ranges within the mattress category, and in a range of sizes, including twin, full, queen, eastern king and California king. It also offers an assortment of temperature-balancing products.

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